Gartner’s Forecast on SaaS Revenue Report

In the past three years, it has been noticed that the market for Software-as-a-Service (SaaS), one of the important part of cloud computing has thrived. According to the Gartner’s research, the SaaS area will make a revenue of $14.5M in the year 2012, which simply means that compare compared to the last year there is a boost of about 17.9%.

In the coming three years, the worldwide SaaS revenue will hit $22.1B, due to increased interest in adopting cloud computing and cloud hosting services. “The increasing friendliness with the SaaS model and the growing use of Platform-as-a-Service (PaaS) has contributed to increased interest of technology adoption” says Gartner’s Research Director, Sharon Mertz. The more widespread use is due to the implementation of horizontal applications, methods of virtual work and initiatives shown in the Web 2.0, (i.e. communicators to access email online).

In Latin America, however, a fearful market has been noticed in the face of global opportunities. This year, it is predicted that it will generate a revenue of about $419.7M, which is an increase of 26% year on year.

The most popular and widely used applications are email, financial management, sales automation and CRM control and corporate spending. The adoption of Latin America must be led by Mexico and Brazil, as per Gartner, especially they need to focus on packaged solutions for Content, Communications and Collaboration (CCC), Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP).

To get an idea of the difference between the market of Latin America and other regions, the Gartner’s revenue forecast in North America has reached to U.S. $9.1B in 2012 compared to $7.8B consolidated last year. Today, North America is considered as the most advanced user of SaaS (Software-as-a-Service), particularly in spreadsheet applications, office suite and other online software’s. The virtual programs used for video conferencing are one of the elements that has drawn attention to the region.